mobility policy strategies - mercer policy strategies ... evolution of mobility programmes and...
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H E A L T H W E A L T H C A R E E R
M O B I L I T Y P O L I C YS T R A T E G I E S
F O R S M A L L A N D M I D - S I Z E DM O B I L I T Y P R O G R A M M E S
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T O D AY ' S S P E A K E R S
Olivier MeierMunich
Arvind Gupta-LawrenceGeneva
CLICK HERE TO ASK A QUESTIONTO “ALL PANELISTS”
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M O B I L I T Y P O L I C Y S T R A T E G I E ST O D AY ’ S A G E N D A
Setting the scene:evolution of mobilityprogrammes andpolicies.
The need forstructure andchange: businesscase.
Smart ways tostructure andchange policies forsmall and mid-sizedprogrammes.
Key takeawaysand strategies.
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STEP 1SETTING THE SCENE
M O B I L I T Y P O L I C Y S T R A T E G I E S
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E V O L U T I O N O F M O B I L I T Y P R O G R A M M E S
Phase 1 Phase 2 Phase 3 Phase 4
First overseas operationsGrowing
internationalmaturity
Worldwideintegration and
planning
NUMBERS Insignificant Insignificant <1% of Staff 1 to 3% of Staff
NATIONALITY OF EXPATRIATES
All company HQnationals
Company HQnationals + few third-
country nationals
HQ nationalsincreasingly
replaced by third-country nationals
and locals
Global sourcing oftalent, less
emphasis onnationality
HR ROLE
HQ-driven, trialand error
Operational, focuson important
administrativetasks
Involvement ofhost HR, defining
roles andresponsibilities
Business partnerrole, fostering
mobility culture
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E V O L U T I O N O F M O B I L I T Y P R O G R A M M E S
Phase 1 Phase 2 Phase 3 Phase 4
First overseas operationsGrowing
internationalmaturity
Worldwideintegration and
planning
Insignificant Insignificant <1% of Staff 1 to 3% of StaffASSIGNMENT POLICY STRUCTURE
Individualnegotiations with
HQ
Home countrybalance sheet, HQ-
centric focus onpolicy
Some degree offlexibility/
segmentation,global policyframework
Full segmentationsupportingassignment
patterns
MANAGEMENT’S VIEW
“Find someone wecan trust to getthe job done”
“Something weneed to do togrow” “use
experience andbring back to HQ”
Cost concerns,alternatives,
programmes todevelop global
perspective/talent
Global talentsourcing,
redefinition ofexpatriation—ROI
to company
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T R E N D S B Y M O B I L I T Y P R O G R A M M E S I Z EA S S I G N M E N T T Y P E S
.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Typical long-term assignments
Short-term assignments
Global nomads/career expatriates
Commuters
Employees on rotational assignments
Locally hired foreigners
Contract employees
Developmental/training assignments
Permanent transfers
EXPECTED INCREASE
> 100 assignees
50-99 assignees
1-49 assignees
Source: Mercer‘s 2012 Worldwide Survey of International Assignment Policies and Practices
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T R E N D S B Y M O B I L I T Y P R O G R A M M E S I Z ET Y P E S O F M O V E S
62
11.4
26.6
52.9
13.9
33.2
48.2
12.9
39
From HQ to subsidiaries
From subsidiaries to HQ
From subsidiaries tosubsidiaries
100 or more assignees50-99 assignees49 or fewer assignees
Source: Mercer‘s 2012 Worldwide Survey of International Assignment Policies and Practices
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T R E N D S B Y M O B I L I T Y P R O G R A M M E S I Z EN U M B E R O F P O L I C I E S
51.1
48.9
34.3
65.7
26.7
73.1
0 20 40 60 80
One Policy
Multiple Policies
100 or more assignees50-99 assignees49 or fewer assignees
Source: Mercer‘s 2012 Worldwide Survey of International Assignment Policies and Practices
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T R E N D S B Y M O B I L I T Y P R O G R A M M E S I Z EU S E O F L O C A L / L O C A L P L U S A P P R O A C H E S A SO P P O S E D T O H O M E - B A S E D B A L A N C E S H E E T S
5
40.2
8
11.6
14
21.2
17.6
29.6
7.4
20.4
12
13
14
29.1
5.6
20.1
15.6
15.6
Other
No
Yes, but only intra-regionalassignments
Yes, but for specific types ofassignments (e.g. developmental)
No, but considering implementingthis option
Yes, for all assignments
100 or more assignees50-99 assignees49 or fewer assignees
Source: Mercer‘s 2012 Worldwide Survey of International Assignment Policies and Practices
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C U R R E N T C H A L L E N G E S
Source: Mercer‘s 2012 Worldwide Survey of International Assignment Policies and Practices
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Finding suitable candidates for assignments
Current conditions may not be attractive enough
Current policies do not allow for flexibility
Current policies do not reflect business needs (e.g.,not enough policy segmentation)
Current conditions are too costly
Performance level of employees on assignment
Inability to use gained experience upon repatriation
>100
50-99
<50
Assigneepopulation size
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STEP 2THE NEED FORSTRUCTURE ANDCHANGE: BUSINESSCASE
M O B I L I T Y P O L I C Y S T R A T E G I E S
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T A L E N T S H O R T A G E
Source: Mercer research, Mercer Talent Barometer 2013, Mercer Talent Mobility 2012, Manpower 2013, Mercer Inside Employees’ Minds 2011, LinkedInTrends 2013, Deloitte 2013, PWC 2012, Economist Intelligence Unit 2011.
CEOs CONFIDENT THEY WILL HAVE TALENT NEEDEDTO GROW ORGANISATION30%COMPANIES REPORTING DIFFICULTIES IN FILLINGVACANCIES35%COMPANIES THAT HAVE UPDATED, OR ARE CURRENTLYUPDATING, TALENT SOURCING STRATEGY60%
INTERNATIONALISATIONCHANGE IN DEMOGRAPHICS
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R E A S S E S S I N G AT T R A C T I V E N E S S F O RD I F F E R E N T D E M O G R A P H I C G R O U P S
Countries developing economically or with unstable political situation.Countries with stable economies, comfort of home.
MOVING FROM:
Greater appeal of certain locations vs. others.(Perceived) barriers such as language (Asia).
MOVING TO:
Compensation & Benefits.Learning, appreciation, work life balance and workplace relationship.Job security aspects.
AGE/LEVEL:
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P O L I C Y M A N A G E M E N T C O M P L E X I T Y
INCREASINGCOMPLEXITY DUE TO:• Rising number of third-
country nationals.• Need for special policy
considerations such asdual career issues,unaccompanied moves,working in two +countries, commuter.
INCREASING DEMANDFOR POLICIES THAT AREWIDE-RANGING:• Offering flexibility to
attract wider range oftarget groups.
• Addressing change invalue perception(package and benefitattractiveness).
• Offering attractive yetcost-optimised packagesduring budgetconstraints.
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B U S I N E S S V A L U E A N D R E T U R N O N I N V E S T M E N T
INCREASING FOCUS ONASSIGNMENT ROIA n e n v i r o n m e n t o f l i m i t e da s s i g n m e n t c a n d i d a t e o p t i o n s .
E n s u r i n g a n e e d f o r s u c c e s s f u lr e p a t r i a t i o n a n d r e t e n t i o n t h o u g hn u m b e r o f p o s i t i o n o p t i o n s o f t e nl i m i t e d .
W h e n b u s i n e s s n e e d s ( m a k e m o v ep o s s i b l e ) a n d p o l i c y o p t i o n s d o n o ta l w a y s m a t c h .
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P R O G R A M M E D E L I V E R Y
INCREASING FOCUS ONEFFICIENT EXPATRIATEMANAGEMENT DELIVERYT h r e a t o f H R h e a d c o u n t c o n s i d e r a t i o n s .
D i f f i c u l t i e s i n f i n d i n g a n d k e e p i n gk n o w l e d g e a b l e m o b i l i t y e x p e r t s .
Te c h n o l o g y o p t i o n s o n t h e r i s e a n de n v i s a g e d b u t o f t e n a b o v e t h e t o p a n dt o o c o s t l y f o r s m a l l / m e d i u m - s i z e de x p a t r i a t e p o p u l a t i o n s .
N e e d f o r t i m e c o n s u m i n g f l e x i b i l i t y a n de x c e p t i o n s h a n d l i n g w h i l e i n t i g h tp e r s o n n e l s i t u a t i o n s .
C o m p l i a n c e c o n s i d e r a t i o n s .
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C O R P O R A T E C U L T U R E C H E C K L I S T
CostSensitivity
PopulationDiversity
Tolerance forExceptions
Differentiation byLevel and/orNationality
Should all the employees get the same type of benefits at the samelevel (e.g. housing, schooling etc.); differentiation by nationality (e.g.provision of lower hardship or premiums for regional moves).
How likely are line managersto approve exceptions?
Number of nationalities, proportion ofthird-country nationals, move fromdeveloping (low paying) countries?
Differences by industry (highcost/high margin – energy sectoror lower margin – IT sector)?
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C O R P O R A T E C U L T U R E C H E C K L I S T
CompetitivePressure
Cash orBenefits
Hand-offs orPaternalistic
Skeletons inthe Closet
Past history of the company: what policies have been tried and failed?Echoes of past acquisitions / different groups?
How centralised is the company? Policy guidelines onlyor detailed policies? How much family/spouse support?
Expat preference for cash incentive vs.benefits in kind? Family profiles, experience,cultural differences, industry practice?
Which profiles are difficult to recruit?Competition in specific market /countries? Practices driven byinternal equity or market pressure?
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STEP 3SMART WAYS TOSTRUCTURE ANDCHANGE POLICIES FORSMALL AND MID-SIZEDPROGRAMMES
M O B I L I T Y P O L I C Y S T R A T E G I E S
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S M A R T W AY S T O S T R U C T U R E A N D C H A N G ET H E I D E A L M O B I L I T Y L A N D S C A P E
EXECUTED THROUGH POLICY, PROCESS, AND HR SERVICE DELIVERY
Policy,process,
governance &communication
ROI
TalentManagement
In the rightplaces and
roles
The rightpeople
At the rightinvestment
For the rightlength oftime and
results
Resourceplanning
Totalrewards
Talent segmentation.Talent identification.Candidate profiles.Selection criteria.Selection process.
Identification of need,locations, critical roles.
Key skill needs.
Assignment purpose.Assignment type and
length.Assignment lifecycle
management.Transition management.
Contracts.Remuneration,benefits, support.Retention.Funding.Other related costs.
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R I G H T P E O P L E , P L A C E S A N D R O L E S
CONNECT smartly with TalentManagement and Recruitment.
CHALLENGESourcing issues, scarcity of talent, nolarge expatriate pool.
QUESTIONSIs there any mobility strategy, what are the reasons and thepurpose of having assignments?
Do we hire the right people?
What is our career proposition? Is it interesting enough?
Do we have a vision or agenda on repatriation andretention?
Are we aware of any “political dimensions”?
How do we plan for future growth?
How do we meet challenges of a changing workforce alongwith demographic changes?
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R I G H T P E O P L E , P L A C E S A N D R O L E S
CONNECT smartly with TalentManagement and Recruitment.
STRATEGY
Involve business in mobility strategy.
Educate stakeholders in the mobility process.
Enlarge your involvement in the hiringprocesses.
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R I G H T I N V E S T M E N T , T I M E A N D R E S U L T S
SEGMENT smartly when it comesto policies.
CHALLENGEStep away from one size fits all, but donot over-engineer.
QUESTIONSWhy do we want to segment?
How many policies should we have for a smaller expatriatepopulation?
Should we copy and paste what works well for company X “itlooks really good”?
Should we adjust our policy according to what benchmarkssay?
Do we have the right processes in place?
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R I G H T I N V E S T M E N T , T I M E A N D R E S U L T S
SEGMENT smartly when itcomes to policies.
STRATEGY
Take wise decisions when segmenting, applycommon sense.
Develop flexible options instead of increasedsegmentation.
Face the brutal truth: Segmentation will notput an end to exceptions.
Do not rely on benchmarking information only,but consider what suits your organisationbest.
Place focus on processes, communicationand service delivery.
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R I G H T I N V E S T M E N T A N D P E O P L E
PAY smartly.
CHALLENGEProvide an attractive package whilekeeping costs under control.
QUESTIONSHow important is a very competitive mobili ty package?
What kind of restrictions do we have in terms of cost andspending?
How is our mobility package valued?
Do we know what our assignees value (family, cash,benefits, etc.)?
Do we have to motivate all employees to accept anassignment via pay?
What is the company culture and direction (taking care orlaissez-faire mentality, flexibility)?
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R I G H T I N V E S T M E N T A N D P E O P L E
PAY smartly.
STRATEGYKeep it simple.
Avoid full-scale copy and paste, but follow proventracks in compensation approaches.
Avoid experiments and do not create customexpatriate pay philosophies.
Consider lump sum approaches, introduceflexibility.
Invest your money strategically and do not sacrificedue to cost constraints (cultural training, familysupport).
Invest in communication and preparation.
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R I G H T I N V E S T M E N T A N D P E O P L E
MANAGE smartly.
CHALLENGEComplexity, frustration, high expectations combinedwith administrative and compliance burden.
QUESTIONSHow should we organise our daily operations?
Should we consider outsourcing, and for what parts?
Outsourcing vs keeping task in-house: What are thebenefits, what are the challenges?
Should we invest in technology, and if yes, when and towhat extent?
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R I G H T I N V E S T M E N T A N D P E O P L E
MANAGE smartly.
STRATEGYOutsource smart: consider tax, social security,relocation; difficult to stay tuned to changes in riskyenvironment.
Do not underestimate interface challenge when dealingwith providers.
Conduct prior housecleaning; never outsource a mess.
Keep typical HR tasks in-house as they Impactrelationship with assignee.
Review mobility processes and streamline.
Introduce strong exception management system to savetime and cost.
Relax...! 75% of companies still work with Excel.
Introduce workforce metrics.
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M E A S U R E V A L U E O F A S S I G N M E N T S :A S S I G N M E N T T R A C K I N G T O O L S
9%
13%
21%
11%
21%
35%
76%
61%
37%
4%
5%
7%
<49
50-99
>100
Other
We do not have specific tools and use mainly Excel and Word
We use outside vendor software
We have an application developed in house
Source: Mercer‘s 2012 Worldwide Survey of International Assignment Policies and Practices
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STEP 4KEY TAKEAWAYS ANDSTRATEGIES
M O B I L I T Y P O L I C Y S T R A T E G I E S
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S U M M A R Y
Avoid copy/paste approach forpolicy work.
Seek benchmarking information,but focus on your company andspecific needs of yourorganisation.
Do not over-engineer.
Put more focus on processesand communication.
Connect, network, get involvedand reach out: internally,externally.
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I M P L E M E N T I N G N E W P O L I C I E S : A P R O C E S S
Check populationand provisions.
• Workshop withstakeholders toestablish requirements
• Analyse currentpractices andprocesses
• Evaluate current tools
• List current providers
• Assess current costs
• Brainstormingworkshop and reviewof approaches
• Simulate costs usingdifferent assumptions
• Draft initial policyframework andguiding principles
• Market benchmarking
• Assess new tools
M O N I T O R I N G & C O N T R O L
• Stakeholders approvepolicy framework
• Design detailed policyfor each assignmenttype
• Draft assignmentmanagement structure
• Define provider co-sourcing model
Implementpolicy.
• Stakeholders approveformal policy
• Finalise policydocuments
• Finalise assignmentcoordination structureand team training
• Issue RFP toproviders
• Start communicationplan
Define approachby type of mobility.
Draft assignmentpolicy.
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I M P L E M E N T I N G N E W P O L I C I E S : A C H E C K L I S T
Set a realistic timeline!• Initial diagnostic: two to three months.• Draft policies and processes: two to three
months.• Implementation: six to twelve months.• Total cycle for new policies to be accepted and
implemented: 10 to 18 months.
Define key principles and seekapproval by top management early inthe process.
Establish advisory committeesinvolving home and host HR, top levelexpats and management.
Establish steering committee tomanage the policy, track exceptionsand settle contentious issues.
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S M A R T E R M O B I L I T Y T O F U E L G R O W T H
TRADITIONALTransactional.
Focus on costs.
One size fits all.
An island within HR.
NEWStrategic.
Focus on value creation.
Segmentation by talent type.
Connected to human capital and
business goals.
CATALYSTSGlobalisation.
Organisational complexity.
Demographic changes.
Cost pressures.
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QUESTIONS
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Q U E S T I O N S
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Olivier MeierMunich
Arvind Gupta-LawrenceGeneva
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